Gousto's International Marketing Report: Analysis and Recommendations

This report analyzes Gousto's potential for international market expansion, focusing on the scope and concepts of international marketing, and the rationale for global expansion. It explores various market entry routes and evaluates the opportunities and challenges faced by marketing. The report details key criteria and selection processes for entering foreign markets, along with different market strategies, their advantages, and disadvantages. It also provides an overview of the global vs. local debate, the use of the marketing mix in an organizational context, and the various international marketing approaches Gousto can adopt. Furthermore, the report compares home and international orientations, assesses competitors, and offers recommendations for how organizations should be structured to maximize international opportunities. The report provides valuable insights into the complexities of international marketing and provides strategic recommendations for Gousto's global expansion.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis on the scope and concepts of international marketing.............................................1
P2 Rationale for the organisation to market internationally and explanation of various routes .2
M1 opportunities and challenges faced by marketing.................................................................3
TASK 2............................................................................................................................................4
P3 Evaluation of key criteria and selection process when considering to enter in foreign
market..........................................................................................................................................4
P4 Use of different market strategies and their advantages and disadvantages...........................5
M2 market evaluation and entry strategies along with recommendations for the organisation. .6
TASK 3............................................................................................................................................7
P5 Overview of key arguments in the global vs local debate......................................................7
P6 Use of marketing mix in the organisational context ..............................................................9
M3 Context and circumstances under which organisation adopt global approach ...................10
M4 Adapting to the marketing mix on international level ........................................................10
D2 critical evaluation of marketing mix within the international context.................................10
P7 Explain and analyse the various international marketing approaches GOUSTO can adopt 11
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach...................................................................................................12

M5 Evaluate various marketing approaches and competitor analysis in relation to an
organization and make recommendations on how they should operate in an international
context........................................................................................................................................13
D3 Make recommendations on how organisations should be structured to maximize the
opportunity in an international context......................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International marketing means identifying needs and wants of customers in different
markets and cultures, providing products, services, technologies and ideas to give the firm a
competitive marketing advantage, communicating information about these products and services
and distributing and exchanging them internationally through one or a combination of foreign
market entry modes (Bradley, 2005). Expanding bases to the international market requires huge
investment thus decisions needs to be taken very carefully (International marketing, 2019).
Acquiring high market share and maximising profits are the main purposes of the organisation
going international. Gousto is a local retail company from the UK that is willing to expand
outside the boundaries of UK. Timo Boldt, James Carter are its founders. It deals in the food
service business and delivers homemade meals to the customers. Topics which have been
covered in the report are scope of international marketing, various routes to enter into the global
market, key criteria and selection process and different market entry strategies. Further an
overview of global vs local, how four P's vary internationally, global marketing approaches and
lastly comparison between home and international orientation is made in the report.
TASK 1
P1 Analysis on the scope and concepts of international marketing
Gousto is a small business organisation that deals in the retail business and planning to
expand its operations in the international market. It offers fresh and home cooked recipe boxes to
the customers. For this purpose, a marketing consultant is hired by the company who has
international marketing expertise. The scope and concepts of international marketing is below in
detail:
Concept of international marketing:
International marketing is a process of identifying, analysing, evaluating and satisfying
the needs of customers outside the boundaries of its domestic country. In simple terms it means
serving clients on a global level. In order to gain competitive advantage in the international
market, various strategies are adopted for the promotion of the goods and services they offer.
Importance of international marketing:
International marketing leads to peace among nations- vast amount of people from
different countries work together in the activities of business. Due to this people come face to
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face with each other and get to know about the different cultures, languages, religions and
ethnicities. They learn to respect each other while working thus it leads to mutual understanding
and peace among nations. Before entering into global market Gusto should allow people from
different origins to join the organisation and conduct its marketing activities keeping in mind
about the culture of the country (Vellas, 2016).
Reduces risk and Open opportunities- Going international provides wide amount of
opportunities to the firm. Products which are costly to make in UK can be much cheaper in other
country, this happens due to various reasons like lower labour rates, cost effectiveness of raw
material etc.
Scope of international marketing:
Imports- Different areas of business comes under international marketing, one of them is
represented by imports, it involves importing goods and services from other countries and selling
them into the home country. Gousto should first analyse the demand of the products and services
in the domestic market before opting to import them. As customers are unwilling to buy the
products can lead to major loss for the company (Alserhan, 2017).
Exports- Under the international marketing this area can be covered by the company by
exporting the goods and services made within the domestic market into the international market
for achieving higher profits. Gousto should understand the nature of other countries and then sell
goods and services as per the preferences and specifications of customers.
Joint venturing- In this type of business Gusto can join forces with other brand and enter
into foreign markets. It provides the advantage of reducing risk as both the brands agree to share
profits and losses on decided terms. The chosen company should consider a local company for
the purpose of partnership as knowledge about the market situation can help in understating and
dealing with uncertainties (Joint venture, 2019).
P2 Rationale for the organisation to market internationally and explanation of various routes
Rationale- The main reason for the Gusto to go internationally is that the organisation
has received appreciation from the customers about the quality of the products and services
delivered by them and this attention has increased the confidence of the company, thus now they
want to enhance their customer base and become a popular brand in the food industry. This
company has a potential to grow further. There are various routes through which the company
can enter into the global market but assessing the risk, cost and value attached to it is very
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important. There are two routes to that retailers use market the organisation internationally
which are as follows:
Old school routes- These are known to be traditional methods where organisation uses
already existing approach like going to making contacts with existing resellers, dealers, agents
and distributor (Routes to international market. 2016). They play major roles in introducing the
foreign products in their market. Certain challenges associated with this are the lack of trust from
local company. The organisation has to work hard to include the other businesses in it's
international plan. Opportunities of gaining detailed perceptive unknown market are also part of
this route. For example Starbucks uses these techniques and became successful in china.
 Going directly to the customers- This way of entering into international market is
concerned with establishing relationship with the customers using various techniques.
This is very common and effective route which can be adopt by Gousto as it provides
various opportunities to make customers aware about the existence of the new brand and
use that attention to acquire large market share.
Digital routes- In the age technology different ways have provided lucrative
opportunities to enter into foreign markets. Making use of digital marketing which includes like
creating website, e-commerce place etc. is beneficial for the company. Though they might face
challenges with respect to the availability of finance and risk of loosing large sum of money.
Because techniques like paid advertisement, internet and relationship marketing requires huge
sum of money (Baker and Saren, 2016). For example TESCO is enhanced its website by adding
new features to lure international audience.
 Own international website- This route can be adopted by the Gousto to enter into the
international market it involves reaching to the prospective buyers through online. This
technique is commonly used to establish relationship with the local businesses of other
countries.
M1 opportunities and challenges faced by marketing
The biggest challenge for the marketers is to make people accept the products and
services that the company is offering. Though it is not the only challenge for Gousto there are
several risks that may appear also in form of: rules and regulations made by the government,
payment options, and different culture can also pose a threat to Gousto. On the other hand,
establishing a brand in other countries can provide huge opportunities of economies of scale and
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achieving higher profitability. It requires effective decision making from the managers to assess
the opportunity and quickly grab it so that businesses can achieve its objectives.
TASK 2
P3 Evaluation of key criteria and selection process when considering to enter in foreign market
As Gousto is planning to expand globally there are five major steps which need to be
considered before taking the final decision to enter in a particular nation, they are explained
below in detail:
Country identification- This is the first and foremost step of the selection process,
identifying the potential countries, generally organisation look for those nations which have very
similar characteristics to the those of the domestic country. Selecting appropriate alternative can
help in increasing the profitability of the business. Various key aspects about the market such as
government interference in the business, labour rate, and market dynamics are needed to be
considered. Gousto has chosen China because of its vast size, effective research on the market
must be taken into consideration.
Preliminary screening- Under this step screening is done to market conditions, they are
assessed and a viable option is chosen. It is important to understand the political stability in the
country because too many rules and regulations can negatively impact the growth of the business
(De Mooij, 2015).
In depth screening- This involves analysing whether it will be feasible for the
organisation to enter the market or not as there are many socio and macro-economic factors
which can affect the business such as local market conditions, pricing system of the country and
ways through which goods and services are distributed. Gousto managers have to take measures
like conducting market research and using STP framework for the sale of goods and services in
the foreign country.
Final selection- In this step a list is prepared and prospective countries are decided,
objectives are set by the organisation and competitors are analysed. In order to gain competitive
advantage managers, have to develop strategies. In the same way Gousto had estimated the costs
and extent of competition in the Chinese market using models like porter's five force.
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Direct experience- This is the final stage in which it is required for stakeholder’s from
Gousto have to travel to China and personally experience the market situation. Understanding
their culture, language can provide various advantages. This will prove the authenticity of the
facts collected initially as personal interaction with the market can be completely different. In
this way new opportunities can also be determined (Tiago and Veríssimo, 2014).
P4 Use of different market strategies and their advantages and disadvantages
Finding the right way to enter in the international market is essential. As Gousto is
planning to enter in China because it is a lucrative market, there are various options available
which can be considered by the company, they are explained below in detail:
Direct Exporting- Under this type of strategy the Gousto can directly sell the products of
the company in the Chinese market. Managers have to develop contacts with the local
distributors and agents that can present the products offered by the company to the customers
like manuka honey from New Zealand did to establish the brand in US market. Though there are
certain hindrances in China like rules, regulations and complex distribution system thus
managers should develop ways to overcome to them.
Advantages Disadvantages
 Knowledge about the customers
 No middlemen
 Feedback can be acquired from the
distributors
 Control over business
 Time consuming as building contacts
takes too much time
 Miscommunication can occur due to
various barriers
 Bearing loss completely on its own
Licensing- This is the strategy where rights of products and services can be transferred to
other company. Gousto can use this technique while entering the Chinese market. This is a very
effective strategy as existing firms make use of it's already acquired market share. China is
known to be a closed economy. The government has made it tough by developing various
licensing policies for the foreign companies who wishes to enter into the market For example
Microsoft took license from Chinese government to make its search binge available into their
lands (Dunning, 2014).
Advantages Disadvantages
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 Easy entry into global market
 Lower risk compared to other strategies
 Less necessity of resources
 Lack of control
 High risk of loss of property
 Renewing licence can be burden
Franchising- Another business strategy which allows the company to gain large market
share. It involves granting the permission to the third party for doing business under its own
name. This method is mainly adopted by the established brands, having various outlets for
example McDonald's developing franchise in several countries. This is not considered as an
appropriate option for the companies having small structure thus Gusto should not think of using
this strategy as the company is not well recognised.
Advantages Disadvantages
 This has low financial, legal and
political risk
 Huge amount of profits can be availed
as only it requires only initial
investment and royalty is received
every year
 Less efforts
 Loss of control
 Initial cost is higher
 Chances that reputation of business can
be damaged
 Profits have to be shared with the
franchisor
M2 market evaluation and entry strategies along with recommendations for the organisation
Identifying the attractiveness of the market is vital and determining the ways to enter into
market should be evaluated. The International Market entry mode may be determined by
specifying the extent to which the knowledge or know-how embedded in the asset being
transferred is explicated. The greater the codification or explication of the knowledge and know-
how associated with the product or asset being transferred the more likely will the transfer be
through exporting (Bradley F., 2005). There are several strategies like direct exporting,
franchising and licensing that can be used by the organisation to expand globally. It is
recommended to Gousto to carefully analyse the Chinese market and use strategies like direct
exporting. Benefits attached to this technique are more compared to the other methods. It will
help the organisation in achieving economies of scale without losing control of the business. As
Gousto is a small business entity franchising and licensing should not be considered.
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D1- critical evaluation of international market
Entering into the international market has positive as well as negative effects on the
organisation. When products reach the stage of maturity, new markets are considered as potential
investment. If Gousto does business in new countries growth can be achieved, as for the
customers products offered by the company will be new to them, interest amongst the buyers will
be generated which can lead in an increase in company sales. Though going into completely
different territory can create huge losses as well. Therefore, managers have to carefully
determine the cause and effect of the market and plan accordingly to satisfy the demand of new
customers.
TASK 3
P5 Overview of key arguments in the global vs local debate
Global marketing plan refers to preparing the market strategies according to the standards of
global market while local strategies are using general techniques that are normally used by the
companies within the particular country (Forsgren and Johanson, 2014).
Global VS Local marketing plan
Basis Global Local
Definition Under this type of plan
distinctive strategies are made
by the managers to sell the
products and services as per
the specifications and
preferences of the customers in
the global market
Local marketing plan requires
the knowledge of domestic
market and use standard
strategies to persuade
customers to buy the products
and services
Time These strategies are time
consuming as the marketers
are completly unaware about
the taste and preferences of the
customers. As Gousto is
willing to enter into the
Chinese market this will take
It is less time consuming
though, understanding the
needs and wants of existing
customer base, it is equally
challenging but compared to
the global marketing it is a
more viable option. Gusto
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too much time for markets to
understand the different
aspects of the country.
should spend equal time in
understanding the market of
UK and before jumping to the
in international market it
should make effective plans for
the present customers.
Costly Understanding new markets is
a very costly activity and
organisation requires large
amount of money to develop
strategies for the foreign
customers.
This is less costly as there are
not existing means which are
cost effective. As the
organisation does not have to
spend too much on techniques
like paid media, and hiring
other agencies for the
promotion of goods and
services.
Risk factor The chances of working these
techniques as people across the
country are not aware about
the features and benefits of the
brand. Therefore, it is
considered as a risky
alternative.
It is less risky and provides
more benefits because the
organisation does not have to
go out of their way to analyse
the demands of the customers.
Sales of the products can be
increased even without using
too much tactics.
Market share Though global marketing
provides benefits of acquiring
large market share. This helps
in achieving economies of
scale(Papadopoulos and
Heslop, 2014).
This limits the growth of the
business; the company can not
avail the advantages of high
market share. Thinking out of
the box and going across the
borders is important for
making the brand a household
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name.
Gousto should adopt the global marketing planning as the company has the potential to
gain a large customer base, facing challenges will lead to the further growth of the business. The
company has already accepted a customer base in the UK but it invested in research and
development and kept itself updated about the changing marketing scenario.
P6 Use of marketing mix in the organisational context
In order to develop marketing strategies for the global market the marketers should apply
a marketing mix tool to determine the ways through which the company can establish its niche
on a global level.
Product- Gousto should present the customers with attractive and a wide range of
products like different food ingredients, flavour etc. so that buyers can look forward to try and
use them in order to satisfy their needs. The company should analyse what are the requirements
and preferences of products and then produce those goods and services based on the demand. For
example there is an increasing need of variety and qualitative milk products in the china thus
Gusto is required to develop goods accordingly. Changes should also be made in the packaging
due to changing weather condition in other parts of the world (Kanibir, Saydan and Nart, 2014).
Price- Different pricing strategies are used by the organisation to acquire and retain the
customers, from an international perceptive this factor depends on a lot of factors like purchasing
power of people, shopping habits etc. Gousto should use global pricing strategy to set the rates of
the food products. By keeping the prices low when entering into the new market can help in
generating the interest of buyers and can help in enhancing the sale. For example in japan people
prefer to buy daily commodity items from medium to low range thus prices should be set
accordingly.
Place- This factor is concerned with developing the shops and outlets at an appropriate
time and place. International logistics is the technique that Gousto can adopt, it is used under the
global marketing mix. This helps in the efficient flow of goods and services across the nations.
The company can also indulge in the online business and make products available to customers
at their doorstep by taking orders through websites. For example companies like Microsoft using
created search engine binge for Chinese customers.
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Promotion- It involves persuading customers to buy the products offered by the
company. From the international perceptive informing new customers about the brand is very
important. It is required for Gousto to analyse the culture factors such as religion, values, beliefs,
etc. also understanding how competitors can be tackled are the significant part of this factor.
These elements are needed to be considered before developing an advertisement so that a
positive image of the company can be built and trust can be gained from new customers
(Gillespie and Riddle, 2015). For example in Asian countries different cultures are followed
therefore for the promotions brands like McDonald's and loreal promotes their products as per
the countries belief and values.
M3 Context and circumstances under which organisation adopt global approach
As Gousto provides goods and services to customers at a local level the organisation is
facing challenges because the company does not benefit from the position of a well-established
brand. In order to overcome this situation, the company should opt out for global marketing as it
can help in increasing the image of the organisation. This would also help in improving the
profitability of the business hence growth of the organisation is the ultimate outcome of using
this approach.
M4 Adapting to the marketing mix on international level
Gousto should adapt to the marketing mix as it will provide the company with knowledge
about the market, managers can decide what needes to done to maximise the profits of the
organisation. Under the product strategy the wide variety of goods and services are produced and
new customers’ demands can be satisfied. With effective use of pricing and promotional
techniques customer traffic can be increased to the brand. As the new markets are not aware
about the brands existence, information needed to transferred in an appropriate manner
(Kolodziej, 2014).
D2 critical evaluation of marketing mix within the international context
Using marketing mix for the international business affects the business in a positive and
negative way. Increase in profitability and marinating the positive image in the brand are its
main impacts, by using these techniques helps in understanding the market effectively therefore
organisations should use this tool. Certain negative impacts of this are that it increased the time
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and efforts of mangers and sometimes even after spending large amount of money on
advertisement does not generate enough sales which can lead to losses for the company.
TASK 4
P7 Explain and analyse the various international marketing approaches GOUSTO can adopt
It is very essential for the companies to decide the proper marketing approaches
according to their capabilities in that way they are having a good chance and can succeed in the
market. Various approaches are mentioned below:
Multinational: It is a type of approach in which a company has branches in more than
one country. The number of countries can range from two to ten outlets. Companies do not have
any branches so the key decision-making function is always taken from domestic country of the
company. GOUSTO can adopt this approach as this approach focuses on adopting the product
and services to each individual local market.
Global: It is the type of approach in which the company is having operations in many
countries across the world. The number of companies can range from fifteen to twenty plus. It
uses uniform strategy all over the world so that no discrimination would be done with customers
on the basis of territory. Product development process are completed by parent company and
then distributed to the subsidiary companies for further trading. GOUSTO can adopt this
approach as it lays more emphasis on volume, cost management and efficiency (Shenkar, Luo
and Chi, 2014).
Transactional: It is a type of approach having a mixture of global, multinational and
international approaches. It is complex in nature because it does not consider any country as
home and conducts business by adopting the local cultures and local consumer behaviour. Here
the company has a right to develop products based on their own local needs and demands.
GOUSTO can adopt this approach as it helps to adapt to the local culture in making the ultimate
marketing strategy.
Meta-national: It is the approach which is almost similar to transactional. These
companies have branches all across the world. It is the approach to identify and capture new
knowledge about emerging markets all over the world and using this knowledge to turn into
innovation by producing, marketing strategies and delivering products efficiently on a global
scale.
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The main reason for every company to exist is to increase sales and profit. GOUSTO
should adopt a global approach as it will increase its sales and open up the market for all
consumers from all over the world and also allow the company to reduce dependence on their
local and national economies. The expansion of business worldwide will increase their potential
too and would encourage them for implementation of new products.
P8 Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach.
In home orientation, GOUSTO considered only the similarities between the market they
are operating. If they are getting success at the present time, they make an assumption that at a
future date they will get success also. GOUSTO’s main aim is to produce products of high
quality in such a way so that no other competitor would affect its reputation by making a similar
product which can compete with Gousto’s own product. To undertake effective research about its
competition, a company must first determine who its competitors are. The domestic market will
certainly provide some input here. However, it is important to include any foreign company that
either currently is a competitor or may become one in the future (Gillespie and Hennessey, 2011)
Market orientation is a key factor for the success of domestic and international activities,
but knowledge about differences in degrees of market orientation remains limited for the firm
that has varying international activities. International orientation considered the assumption that
there are similarities as well as difference between the domestic and international market.
Differences between them would assist GOUSTO to make strategies accordingly which will lead
to sustainable business performance by getting competitive advantage over other competitors. In
the UK, GOUSTO will conduct a research about all other companies which are dealing with
similar type of products so that they are able to know about the competitors, where as in an
international context the company has to appoint members who can do a proper research about
the similar companies operating outside the country (Lovelock and Patterson, 2015).
Implication of approaches can be seen in both positive as well as negative manner.
Multinational approach improves the reputation of the company within their domestic market
and also will increase the choice of goods and services among consumers, on the other hand this
approach will increase competition from other companies present within the industry. The
impact of transactional approach is that this company is able to maintain a greater degree of
sensitivity to the local market where they maintain their facility. By dealing dozens of services it
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experiences the strong pressure of cost reduction. By using a global approach, the company is
now able to increase its sales and is able to expand its product worldwide which overall has a
positive effect and helps the company to increase the profitability as well as reputation.
M5 Evaluate various marketing approaches and competitor analysis in relation to an organization
and make recommendations on how they should operate in an international context
Approaches used to analyse international marketing are multinational, global,
transactional, meta national which were discussed above. This approach will help GOUSTO to
expand its products worldwide. The company should also try to expand their product range out
of England to enhance their customer share. By expanding the product internationally, it will
help the company to reduce the institutional risk. GOUSTO should also try to change the pricing
strategy according to the competitors and customers as if a similar product is available in the
market with same price (Martin and Javalgi, 2016).
D3 Make recommendations on how organisations should be structured to maximize the
opportunity in an international context
After knowing the rivals in the market, it is very important for the company to make a
certain strategy by which it can expand its market internationally. Organisational structure must
be flexible and adoptable to the changing environment so that GOUSTO would be able to accept
the changes related with culture and customer demand in the new market. In addition to this, the
company must also focus towards increasing the leadership and on-job training practices within
the organisation in order to direct the operations performed by employees. This helps in
enhancing the practices and performance of employees which further contribute toward
enhancing the organisational productivity and profit as well (Morschett, Schramm-Klein and
Zentes, 2015).
CONCLUSION
From the above project report it has been concluded that international marketing is a form
of marketing in which products or a whole organisation is marketed on an international level.
International marketing is a wide concept with a broad scope as it includes promotions of such
items that are going to be sold on globally. There are various types of strategies such as
franchise, licensing, direct exporting etc. that could be used by business entities to enter in the
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international market. Different types of approaches such as multinational, global, transnational,
meta national etc. can also be used by companies to market themselves globally.
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